Shippers Council Orders Sharaf Shipping to Re-Issue Invoice to Consignee Over Arbitrary Charges

Orders a Stop to Arbitrary Charges on Groupage Cargo

The Nigerian Shippers’ Council has ordered Sharaf Shipping Company to re-issue a fresh invoice of Three Hundred and Thirty-Three Thousand Naira (N333,000.00) to Lee Look Nigeria Limited, being the excess charged to the tune of N1,547,688.13 (One Million, Five Hundred and Forty-Seven Thousand, Six Hundred and Eighty-Eight Naira) on groupage cargo of seven (7) packages of raw materials from China.

In a complaint letter signed by the Managing Director of Lee Look Nigeria Limited Mrs. Chinwe Ezenwa complaint against ‘ excessive shipping charges by Sharaf Shipping Agency Nigeria’ on 17,260 CBM equivalent to 2,140,845 KGS with Bill Lading number: TGHU6063826, ‘Via charter link HB/L NO GLGS 1808007101.’ She further lamented that ‘the FOB value of the goods is USD1,400.00 and the Freight was USD1,000.00′, which was above the value of the goods while the import duty of the goods is N73,584.00, that summed up to N13,055.00 only, with taxes and surcharges’ she said.

 In a tripartite meeting organized by the Council involved all the parties in order to resolve the allegation amicably. Sharaf Management was led by its Country Chairman Chief John Adebanjo, and its Managing Director Capt. Sridhar Balakrishna stated that the invoice issued to the complainant was in order, based on the 17.260 CBM Cargo and Sharaf cannot grant 100% waiver as requested by the consignee, because ‘we are here to make profit’, he said. Sharaf further stated, ‘the said container was discharged in the Country’ port and was transferred to the warehouse after rigorous clearing procedures and traffic situation and devanning was done, which represents the date warehouse storage charges start counting which have nothing to do with four weeks stated in the complainant letter’ Sharaf also alleged that the ‘Complainant did not paid the freight’.

The Nigerian Shippers Council critically reviewed the charges based on the Standard Operating Procedures and resolved that the complainant be issued with a new invoice of N490,867.47 not N1,547,688.13 on 17.260 CBM and the cargo be released with immediate effect.

The Management of Lee Look Nigeria Limited was very grateful for the professionalism exhibited by Shippers’ Council in addressing the complaint.

In a related complaint, the Management of Unique Global Concept Enterprises has sent a complaint letter signed by C. Ejinkeonye Esq., alleging ‘excess charges by Sharaf Shipping Lines’ on 8.46 quantity of their cargo from NHAVA Sheva, India where Sharaf issued an invoice of over N700,000 for goods of 8.46 CBM. On LCL_IMP/00252/18-19, which the complainant felt was exorbitant, it requested for Shippers’ Council’s intervention on the complaint.

The outrageous charges on the groupage cargo according to the complainant were on Cargo handling charges-Collection, Documentation Fee, Cargo Storage and Stamp Duty Charges.

Shippers’ Council organized a tripartite meeting to resolve the complaint; after careful analysis of the charges based on the industry’s practice, the Council informed the complainant that the Stamp Duty charged is legitimate because it is Government charges, but other charges were reviewed accordingly: that Sharaf Shipping should convey to their clients 72 hours before taking all cargo to warehouses and the complainant be issued with a new invoice of N225,814. 65, not N700,000.00 as earlier on communicated to the complainant.

Unique Global Concept Enterprises was grateful to the Council and has taken delivery of their cargo based on the new invoice issued.